Sales Return- Real Estate Developer

[Vamsi Krishna]

Hello sir

We are engaged in the construction of Flats (Hyd, Telangana) and by June'17 we have raised Invoices against sale of flats from customers based on various mile stones as per Agreement of sale and discharged Service tax @ 4.5% (availing 26/2012 notification) and 1.25% of VAT.

Few of the flats booked in 2015-16 & 2016-17 are now being cancelled by customers, we have completed 80% of the construction and yet to receive Occupancy Certificate ( Completion certificate).

Now in the month of July'17 , shall i raise Credit note and reverse both the ST & VAT credit and claim refund. And if so ,,

a) Can i claim the refund of VAT as SGST and ST as CGST ?

b) Can i claim refund even for the flats for which ST has been paid in 2015-16 ? ( 6 months prior to the appointed day has been given in the transitional provisions).

Can any expert share views ...

Thanks ..

[DR.MARIAPPAN GOVINDARAJAN]

Have you got clarified in this issue? If no please inform.

AI Summary

GST refund on cancelled flat bookings: whether credit notes, tax reversals, and transitional allocation permit recovery under GST. Treatment of cancelled flat bookings where developer issued milestone invoices and paid service tax and VAT: whether to issue credit notes and reverse those taxes and the mechanism to claim refunds; whether VAT can be treated as SGST and service tax as CGST for refund purposes; and whether transitional provisions permit refund or reversal for taxes paid prior to the appointed day, including payments beyond the six months reference.